Hobart unit rents have hit a record $525 a week, according to Domain, making the city one of only two capitals where rents rose in the September quarter.
Domain’s rent report for the September quarter, released today, found median asking rents for Hobart units rose 1% ($5) over the quarter and 9.4% over the year.
Only Darwin recorded stronger annual growth in unit rents.
At $625 a week, Hobart house rents were unchanged over the quarter but 5.9% higher than a year ago, a record according to Domain.
Domain’s figures show the city has one of the tightest rental markets in the country.
Its vacancy rate of 0.3% is level with Darwin’s for the lowest of any capital.
Among the suburbs in Domain’s data, Brighton recorded some of the biggest rises.
Unit rents in Brighton jumped 13% to $520 a week and house rents rose 12% to $583. In Clarendon Vale, house rents have climbed 36.7% in five years to $540.
House rents in Battery Point were unchanged over the year, at $750 a week.
Some regional areas are rising even faster. House rents in Latrobe rose 16% to $580 a week and in Devonport 12.5% to $540.
Devonport house rents have climbed 54.3% in five years, according to Domain.
Across the country, Domain found rents stalled in most capitals despite “severe rental shortages”. Combined capital city house rents were flat at $700 a week.
Domain chief residential economist Nicola Powell said affordability was starting to cap rents, even in markets where very few properties were available.
“Australia’s rental shortage hasn’t disappeared, but it’s no longer translating into higher rents everywhere,” she said.
“Affordability is playing a greater role in determining rental outcomes, even where supply remains exceptionally tight.”
Powell said annual growth figures still looked strong, but much of that growth came from rent rises earlier in the year.
“The combination of exceptionally tight vacancy rates and flat rents suggests affordability pressures are becoming harder to ignore,” she said.
